TAX YEAR 2026/27 · RATES CHECKED OCTOBER 2026

Bermuda Income Tax Calculator 2026–27

Bermuda charges no income tax, and the income tax line here is zero at every salary. What actually comes off an employee's pay is the employee share of payroll tax, a banded levy that employers routinely deduct. Enter a salary to see that share for the 2026/27 tax year, which runs from 1 April 2026 to 31 March 2027.

BY: JACOB· RATES CHECKED: OCTOBER 2026· SOURCE: GOVERNMENT OF BERMUDA, OFFICE OF THE TAX COMMISSIONER - CALCULATING PAYROLL TAX FOR THE PERIOD APRIL 1, 2026 - MARCH 31, 2027 (EMPLOYEE PORTION BANDS AND BMD 1,000,000 CAP); PAYROLL TAX AMENDMENT ACT 2026 (BANDS AS ENACTED); KPMG TIES 2026 - BERMUDA (CORROBORATING STRUCTURE; ITS PRINTED BANDS ARE THE SUPERSEDED 2025/26 SET)

Calculate your Bermuda take-home pay

Income tax and employee contributions, 2026/27 rates.

Annual gross income (BMD)

Currency

Take-home pay / year—

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Effective rate

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Marginal rate

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Monthly take-home

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Tax freedom day

Breakdown	Amount

Estimates for a single employee with standard allowances, calculated in your browser. Rates checked October 2026. Not tax advice.

The system

How income tax works in Bermuda

Payroll tax is legally the employer's tax, charged under the Payroll Tax Act 1995, but the law sets a prescribed employee portion and lets the employer deduct it from pay, which employers do as a matter of routine. The 2026/27 employee bands on annual remuneration are 0.25% up to $48,000, 7.75% to $96,000, 10.75% to $200,000, 11.50% to $500,000 and 12.50% up to a cap of $1,000,000. Nothing is charged on remuneration above the cap. On a $100,000 salary, the employee share comes to $4,270 for the year.

These bands are new. The Payroll Tax Amendment Act 2026 cut the first two employee rates, from 0.50% and 9.25% in 2025/26, and lifted the third band from 10.00%, all with effect from 1 April 2026, so older guides that still print the previous table will give different answers. Two things are left out of the model: the employer's own portion of payroll tax, a separate rate of up to 9.75% that is never taken from pay, and the small flat social insurance amounts and typical 5% private pension contributions that appear on many Bermuda payslips.

What this calculator leaves out

Bermuda has no income tax: there is no personal income tax, capital gains tax or inheritance tax on individuals, and the income-tax band in this file is a single 0% band. What employees actually pay is the employee share of payroll tax, which employers routinely deduct from pay. The figures modelled here are that employee share only.
Payroll tax (employee share), tax year 2026/27 (1 April 2026 to 31 March 2027), charged on annual remuneration on marginal bands: 0.25% up to BMD 48,000; 7.75% from BMD 48,001 to 96,000; 10.75% to BMD 200,000; 11.50% to BMD 500,000; 12.50% to BMD 1,000,000. Remuneration above the BMD 1,000,000 cap is not taxed, so the top band is followed by a 0% band in the model.
Payroll tax under the Payroll Tax Act 1995 is legally levied on the employer; the law lets the employer deduct the prescribed employee portion from the employee's pay, and in practice employers do. This model assumes the full employee portion is deducted. The employer's own portion (a separate rate set by employer class and payroll size, up to 9.75% for exempt undertakings in 2026/27) is an employer cost, is never deducted from pay, and is excluded.
The 2026/27 employee bands are new: the Payroll Tax Amendment Act 2026 cut the first two bands (from 0.50% and 9.25% in 2025/26) and raised the third (from 10.00%) with effect from 1 April 2026. Older sources, including the KPMG TIES 2026 Bermuda chapter, still print the 2025/26 bands.
zero_tax is deliberately left false so the engine still applies the employee payroll-tax levy; the income tax itself is nil at every income.
The 15% corporate income tax in force since 2025 applies only to Bermuda entities of multinational groups with revenue of EUR 750 million or more; it does not touch wages. Small flat-rate social insurance (contributory pension) amounts and private occupational pension contributions (typically 5% for Bermudian employees) are likewise not modelled.

Rates

Bermuda tax brackets (2026/27)

Taxable income band	Rate
Up to $0	0%

Bands apply to taxable income — what is left after any allowance.

Payroll tax (employee share) (on gross income)

Gross income band	Rate
Up to $48,000	0.25%
$48,000 – $96,000	7.75%
$96,000 – $200,000	10.75%
$200,000 – $500,000	11.5%
$500,000 – $1,000,000	12.5%
Above $1,000,000	0%

Worked examples

Take-home pay at four salaries in Bermuda

Gross salary	Income tax	Social	Take-home	Effective rate
$25,000	$63	$0	$24,938	0.3%
$50,000	$275	$0	$49,725	0.6%
$100,000	$4,270	$0	$95,730	4.3%
$200,000	$15,020	$0	$184,980	7.5%

On $50,000 a year, take-home pay in Bermuda is $49,725 — about $4,144 a month — after $275 in income tax and no employee social contributions. Salary levels are the local equivalents of US$25,000 / $50,000 / $100,000 / $200,000 at the ECB reference rate of 28 October 2026, rounded.

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FAQ

Bermuda tax — frequently asked questions

Yes. There is no personal income tax, capital gains tax or inheritance tax for individuals in Bermuda. The deduction employees actually see is the employee share of payroll tax, which is a separate levy charged under the Payroll Tax Act 1995.

$49,520 for the year. It is built up band by band: $120 on the first $48,000, $3,720 on the next $48,000, $11,180 on the slice up to $200,000 and $34,500 on the slice from $200,000 to $500,000.

No. The employee share is capped at remuneration of $1,000,000, and nothing is charged above that level. The largest possible employee share for 2026/27 is therefore $112,020.

This model covers the employee payroll tax share only. Small flat-rate social insurance (contributory pension) amounts and private occupational pension contributions, typically 5% for Bermudian employees, also come off many payslips and are not modelled here.

Sources & method. Rates and bands: Government of Bermuda, Office of the Tax Commissioner - Calculating Payroll Tax for the period April 1, 2026 - March 31, 2027 (employee portion bands and BMD 1,000,000 cap); Payroll Tax Amendment Act 2026 (bands as enacted); KPMG TIES 2026 - Bermuda (corroborating structure; its printed bands are the superseded 2025/26 set), checked 29 October 2026. The calculator models a single employee using standard allowances only; the full method, including what is left out and why, is on the Methodology page. Estimates only — not tax advice.